The price of Bitcoin has been constantly rising over the past 12 months, along with more frequent endorsements from tech leaders such as Elon Musk, but there are fears that the decentralised nature of cryptocurrencies could see loss of control if proper regulation isn’t put in place.
Following the surge of Bitcoin’s price past $61,000 on the deVere Crypto exchange on Sunday, deVere’s founder and CEO, Nigel Green expressed belief that a regulatory framework is needed to ensure stability and protection for investors.
“Whether crypto cynics like it or not, there’s no getting away from the fact that Bitcoin is becoming an increasingly important part of the global financial system,” said Green.
“Bitcoins in circulation are now worth $1 trillion, with prices having rallied 890% over the last year. Most major financial institutions, including investment giants and payment companies, are now backing the world’s largest cryptocurrency, and there’s ongoing soaring interest from retail investors.
“The move towards digital currencies is going to increase – and at pace – over the next few years. This is why financial regulators must now make regulation of the crypto sector a major priority.
“With a growing dominance, Bitcoin and other cryptocurrencies must be held to the same standards as the rest of the financial system with a robust, workable international framework. This will help reduce any potential disruption to global financial stability, protect investors, tackle illicit activity and deliver an economic boost to countries that adopt and adhere to it.”
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Crypto advocate Green previously suggested using the exchanges in the market to address regulatory issues.
He said: “Nearly all foreign exchange transactions go through banks or currency houses and this is what needs to happen with cryptocurrencies. When flows run through regulated exchanges, it will be much easier to tackle potential wrongdoing, such as money laundering, and make sure tax is paid.
“For this to happen, banks will need to open accounts for exchanges, which is why they must be regulated.”
The new high for Bitcoin comes a year after the market crash of March 2020, known as Black Thursday, which saw the cryptocurrency’s price cut in half in a matter of hours, to $4,600.